Valero to buy 7 VeraSun plants - KWWL - Eastern Iowa Breaking News, Weather, Closings

Valero to buy 7 VeraSun plants

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SIOUX FALLS (KWWL) -- A traditional refiner may be coming to the rescue for some Iowa ethanol plants.

Valero Energy Corp. announced Tuesday it will acquire seven ethanol plants and one development site from Sioux Falls-based VeraSun Energy Corp. after a successful auction bid of $477 million.

VeraSun filed for Chapter 11 bankruptcy protection in October and wants the Delaware court's approval of the bid at a hearing planned for Wednesday. The sale is expected to close in April.

Valero's bid is for plants in Charles City, Fort Dodge, and Hartley, Iowa as well as plants in Aurora, SD., Welcome, MN.; Albion, Neb.; and a development site in Reynolds, Ind.

Valero has said previously it would group the plants under a subsidiary, Valero Renewable Fuels, and use staff already in place.

Secured lenders submitted successful credit bids for the remaining VeraSun facilities.

Online Producer: JJ Murray

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